Sheriff Sale Question
Does the bank get to keep any profit after a sheriff sale or does that go back to the homeowner,,,
Example fmv = 100k
mrtge = 60k
high bidder bids 65k
SO who gets the 5k..... ? assuming no other liens Along the same lines
Say the bank buys prop back at 60k.. and they list it and sell it for 80k. Im assuming they get to keep the spread is that correct?
thanks for the replies... I was just wondering because I know a lot of banks seem to re list properties that they bought back at sheriff sale. and I had read in some areas the banks were unable to profit from that... I think in Ohio though they are.. thanks
anyone
Good Day to you:
If someone other than the bank bids the 65K then the bank will use the 5K to offset their foreclosure fees, atty fees etc. Doubtful if you will see any of the money. Now if the bank is the high bidder, then they can sell it for whatever they want, and yes if there is a profit, they keep it.
Good luck and make $$$
Tom
Good Day to you:
If someone other than the bank bids the 65K then the bank will use the 5K to offset their foreclosure fees, atty fees etc. Doubtful if you will see any of the money. Now if the bank is the high bidder, then they can sell it for whatever they want, and yes if there is a profit, they keep it.
Good luck and make $$$
Tom
You might want to ask the Sheriff. In my state, if the property sells at the sale for more than the bank's bid it is considered an "overage" and it goes to the (former) owner, which must come as a pleasant surprise to some people.
The amount in default includes all the legal and other fees the bank has incurred to foreclose the property, so technically that is all they are entitled to at this point. If the bank buys it at the sale and resells it at a profit, that is theirs to keep.
I believe there is a profound difference between a sherriff's sale and a foreclosure. (At least in Maryland) A sherriff's sale is promulgated by a party subordinate to the 1st mortgage holder. (Mechanics lien, 2nd mortgage, etc.) Hence, the "high bidder" would be buying the property subject to that 1st mortgage. An exception to this would be a tax sale, which can move into 1st position, but the 1st mortgagee can pay the tax, thus taking that position back. (Also different than a sherriff's sale.) Please correct me if I am wrong here.
I did some reading on this last night and I was enlightened a little. Maryland is a TRUST DEED state and a sherriff's sale is a different type of sale here. A TRUSTEE'S SALE (the foreclosure) would be done by the trustee. In a MORTGAGE state, however (if I have the right language here) a JUDICIAL SALE (the foreclosure) is done and the sherriff, who plays the same role that the trustee would in a trust deed state. Does anyone disagree?